{"id":7582,"date":"2024-03-25T11:36:21","date_gmt":"2024-03-25T11:36:21","guid":{"rendered":"https:\/\/economicherald.net\/?p=7582"},"modified":"2024-03-25T11:36:21","modified_gmt":"2024-03-25T11:36:21","slug":"moneytalks-big-price-targets-on-mining-stocks-mlg-oz-and-gold-road-as-brokers-say-buy","status":"publish","type":"post","link":"https:\/\/economicherald.net\/?p=7582","title":{"rendered":"MoneyTalks: Big price targets on mining stocks MLG Oz and Gold Road as brokers say Buy"},"content":{"rendered":"

Mining services stock MLG Oz could more than double
\nGold Road Resources\u2019s full year guidance is conservative, says Goldman<\/p>\n

\u00a0<\/p>\n

MLG Oz\u2019s stock price could double<\/h2>\n

Euroz Hartleys<\/strong> has slapped a Buy recommendation<\/strong> on MLG Oz (ASX:MLG)<\/a><\/strong>, with a price target set at $1.21<\/strong>, versus current price of $0.51.<\/p>\n

MLG Oz is a $83 million market capped stock that provides mining services at 29 sites throughout Western Australia and the Northern Territory. The company owns around 150 trucks, 500 trailers and dollies, 100+ loaders and five crushing and screening plants.<\/p>\n

The company\u2019s revenue and earnings are ultimately driven by the volume of resource production at the mine sites, and Euroz is optimistic about MLG\u2019s prospects based on improving conditions on the ground.<\/p>\n

\u201cInflationary pressures are increasingly able to be passed. MLG\u2019s better access to required labour is likely improving fleet productivity, a key margin driver,\u201d said the broker.<\/p>\n

\u201cProcess and systems upgrades implemented over the last few years can also drive efficiency improvements across the business.\u201d<\/p>\n

In the latest first half results, MLG has ticked a lot of boxes with EBITDA and EBITDA margin coming in above expectations.<\/p>\n

First half revenue was $226.4m up 29% on pcp, EBITDA was $28.5m up 72% on pcp, and NPAT of $7.1m up 174.4% on pcp.<\/p>\n

EBITDA margin also increased to 12.8%, up from 10.9% from the last half, tracking in the right direction towards a targeted 15%.<\/p>\n

\u201cWhile a 15% EBITDA margin target is still very much the focus, and the magic number to drive sustainable returns and generate free cash that is closer to shareholders, the expectation is that 2H 2024 margins are likely steady with 1H 2024, before further improvements anticipated in 2025,\u201d said Euroz.<\/p>\n

\u201cDespite a few remaining moving parts, we maintain our Buy recommendation.\u201d<\/p>\n

\u00a0<\/p>\n

GOR\u2019s guidance is too conservative, says Goldman<\/h2>\n

Goldman Sachs<\/strong> meanwhile has a Buy recommendation<\/strong> on Gold Road Resources (ASX:GOR)<\/a><\/strong>, with a price target of $1.95<\/strong> (versus current price of $1.54).<\/p>\n

Goldman noted that GOR has released a full year production guidance of 300-330koz, which is broadly in line with market consensus.<\/p>\n

\u201cWe continue to see [this guidance] as conservative given the timing of ramping up the third pebble crusher, and improvement in mining labour conditions.\u201d<\/p>\n

GOR previously said that mining contractor MACA has been successful in the recruitment of labour to support the ongoing expansion of mining rates, with the workforce now at desired levels.<\/p>\n

Access to ore remains the priority focus at the Gruyere project, where mining and production is guided to continue to ramp up through the first half of this calendar year, with stronger production performance expected for the second half.<\/p>\n

\u201cWe reiterate that a slower recovery of mining operations (either from rain, or now resolved workforce issues) likely has lower gold production risk than perceived.<\/p>\n

\u201cProcessing only stockpiles and pausing mining for the duration of the year would lower our CY24 production from 325koz to ~210koz, but still preserve >60% of CY24 free cash flow,\u201d said the note from Goldman.<\/p>\n

Goldman says the forecast for GOR\u2019s CY24 up to CY27 remain attractive versus its peers, and this supports upside to the stock\u2019s outlook.<\/p>\n

\u201cOur 12 month price is $1.95\/share, and we retain our Buy rating with GOR,\u201d said Goldman.<\/p>\n

\u00a0<\/p>\n

Share prices today:<\/h2>\n

\u00a0<\/p>\n\n

<\/span>\u00a0
\n<\/span><\/p>\n

The post MoneyTalks: Big price targets on mining stocks MLG Oz and Gold Road as brokers say Buy<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Mining services stock MLG Oz could more than double Gold Road Resources\u2019s full year guidance is conservative, says Goldman \u00a0 MLG Oz\u2019s stock price could [more…]<\/a><\/p>\n","protected":false},"author":0,"featured_media":7583,"comment_status":"","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-7582","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"\nMoneyTalks: Big price targets on mining stocks MLG Oz and Gold Road as brokers say Buy - Economic Herald<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/economicherald.net\/?p=7582\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MoneyTalks: Big price targets on mining stocks MLG Oz and Gold Road as brokers say Buy - 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